Quote:
Originally Posted by Krovikan
I think the big boys will fall as well, with only the small profitable players left standing. I follow a blog that tracks the cannabis industry pretty closely, and everyone is losing massively. To me, it seemed like they raised money at tech valuation heading into a consumer market where revenue growth was never going to support the multiples, then everyone overbuilt their supply instead of building based on realistic forecasts and sitting on their money.
The consolidation by the big players at this point seems to be just a game, get out the good news try and keep our stocks high pretending that this increase in revenue will meaningfully decrease the gap between our small revenue and massive operational expenses.
I am very bear on the Cannabis industry, seems like a house of cards ready to collapse hard.
(I don't have any exposure to the Cannabis industry at this time, and not planning on adding any)
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Yeah, fully agreed. The big boys have been doing their own cost restructuring for the past few months, which was exactly as you described - big expansion hopes, with little attention to the core and gradual expansion. Seems to be a disaster for all of them really. I'm not sure any of them will truly be standing when this is all done as all appear to have made the same mistake, with little money to keep up.